To understandand predictthe behavior of individuals − how, what and whyindividuals makethe choices they make − is centralin economics andmarketing.For example, in the private sector it is important for executives to know howconsumers will react tochanges such as the introductionof a new product, or the alteration ofgoodsattributes.The public sector hassimilar issues, for exampleif acar rebateis introduced forenvironmentally friendly cars, how is thecar market affectedthen?Can the environmental objectives be achieved?Withinthis course, we study models ofindividualchoiceandeconometricmethods forinference andprediction.
formulate models of discrete choice, market demand and consumer surplus
explain theconcept ofrationality,the basicas-ifassumptionin the theory ofexpected utilityas well asanomalies inthe behavior of individuals.
Independently program models andanalyze data
use simulation-based methods for prediction and estimation
describe and use frequentist and Bayesian approaches for inference and prediction
designing experiments / surveys for data collection, especially Stated-preference techniques
For each part of the course, a theoretical basis is provided during the lectures, which will providea knowledge basefor acomputer lab/homework assignment. Each part of the courseis accompanied by ahomework assignment. That is, normally,a total of three assignments are required to be completed during the course and the assignment reports are graded. The final course grade isbased on an appraisalof the results ofthe reportsand the resultsof the exam.
Literature and preparations
Specific prerequisites *
For admitted students to the Master of Science in Civil Engineering and Urban Management (CSAMH) or the Master of Science in Transport and Geoinformation Technology (TTGTM), there are no additional requirements.
For other students:
A completed bachelor’s degree in civil engineering, urban planning, geomatics, geography, engineering physics, computer science, statistics, economics, and/or mathematics, including at least 6 university credits (hp) in each of the following or their equivalents: Programming, Linear Algebra, Calculus in One Variable, and Probability & Statistics; and
English language proficiency equivalent to (the Swedish upper secondary school) English course B/6.
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Train, K., 2003, "Discrete choice methods with simulation", Cambridge University Press (Tillgänglig online).